KUALA LUMPUR: Mah Sing Group Bhd’s net profit for the first quarter ended March 31, 2015 rose 18% to RM98.89mil from RM83.78mil a year ago due to higher work progress and sales from ongoing development projects.
The property developer said on Thursday, that the ongoing development projects that contributed to its earnings were Icon City, M City, M residence, M Residence 2, Southville City@ KL South and Southbay City.
Meanwhile, its revenue jumped 22.1% to RM784.14mil compared to RM642.19mil a year ago due to the improvement in sales from these development projects as well as the plastics segment.
The plastics segment contributed positively to its revenue and earnings, whereby its revenue increased 1.7% to RM61.7mil, from RM60.6mil a year ago.
“As at March 31, 2015, a total of RM48.71bil comprising unbilled sales of RM5.12bil combined with remaining gross development value of RM43.59bil is expected to sustain revenue growth for the next 8 to 10 years,” Mah Sing said.
With its net cash position, the group can capitalise on appropriate acquisition or joint venture opportunities to further strengthen its property portfolio for long-term growth momentum.
The company’s earnings per share for the quarter was up 5.96sen, from 5.49sen a year ago.
As at end of its first quarter, the group had a cash pile of approximately RM1.59bil and in a net cash position.
Mah Sing said that the country’s property market is undergoing a softening demand as buyers adjust to cooling measures and GST.
Hence, the company has strengthened its market efforts towards products differentiation through a diverse range of prices properties at various growth locations.
It noted that its new projects that are key drivers of sales include Southville City@KL South , D’sara Sentral in Sungai Buloh, and Lakeville Residence in Taman Wahyu.
Going forward, Mah Sing expects the upcoming projects such as Meridin East in Iskandar Malaysia and Festival Lakecity@Puchong CBD to spur its future sales.
In the long run, it said that it is confident of market prospects supported by strong household formation, young demographic and steady employment condition.
“The group’s strategic positioning in the four property hotspots with greater focus in Klang Valley due to extensive ongoing and proposed public transportation infrastructure investments in the key corridors where its projects are strategically located,” it added.
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